EC120 Lecture Notes - Lecture 2: Demand Curve, Economic Equilibrium, Durable Good
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EC120 Full Course Notes
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Calculate opportunity cost of production: what else could you make with the same inputs, draw a production possibility frontier for each participant. Lower opportunity costs determine comparative advantage, which drive trade. Countries will specialize (at least partially) according to comparative advantage. Inferior good: labour market for young adults, education market in other countries. Expectations how does education affect well-being: future income, job satisfaction, current consumption value. Expectations education cannot be stored but employment contracts are long. Number of sellers supply is strictly controlled by government. Universities are subsidized, and not profit motivated. Group of buyers and sellers of a good or service. Size of a market depends on the nature of the good. Key issue for the government policy canadian competition bureau: the competition bureau, as an independent law enforcement agency, ensures that. Canadian businesses and consumers prosper in a competitive and innovative marketplace. Competitive markets require that there are many buyers, with free choice.
